Income protection Insurance for Small Business Owners
Protect your income, your independence, and your business with a regular income in tough times.
When you can't work, who'll pay the bills?
If you're a small business owner, your income often depends entirely on your ability to work. But what if illness or injury forced you to take a break? Income protection gives you a monthly benefit so you can still cover business and living expenses when you're not earning.
Protecting you is protecting everything
You are your business - and running it gives you both freedom and responsibility. But without statutory sick pay or employment benefits, a period of ill health can hit hard.
- Your income is your engine
If you're off sick and can't work, your income can stop overnight. Income protection replaces a portion of your earnings - usually up to 70% - so your bills and essential business costs don't pile up. - Stop your business stalling
A sudden health setback can disrupt client projects, lead to cancellations, or halt operations altogether. With regular payouts, you're less likely to dip into savings or take on debt to survive.
Tailor your cover to your work
Every small business is different, so your income protection should reflect how you earn, save, and plan. Keep these points in mind when comparing options:
- Set the right deferred period
This is the waiting time before your payments start - common options are 4, 8 or 13 weeks. Shorter periods are ideal if you don't have savings, but longer ones can lower your premium. - Choose “own occupation” cover
Make sure your policy covers your specific job, not just any job you could do. This is especially important for tradespeople, creatives, and consultants. - "Key person" income protection
Key person insurance covers the absence of a vital employee. If you can't work, the policy pays a monthly benefit to the company - helping cover lost revenue or interim staff. See also: "executive" income protection.
Summing up
When you run a small business, you are your biggest asset, and the right financial protection helps you keep earning when life doesn't go to plan. It's more than just financial support - it's peace of mind that lets you focus on getting better without worrying about bills or business slowdown.
Frequently Asked Questions
Can I get income protection if I don't have a set salary?
Yes, absolutely. Running your own business as a sole trader or director can mean an unpredictable wage. Most insurers will accept evidence like tax returns, business accounts, or dividend statements to assess your average income. Just be ready to provide a paper trail that shows how much you typically earn each year.
Can I get income protection if I don't have a set salary?
Yes, absolutely. Running your own business as a sole trader or director can mean an unpredictable wage. Most insurers will accept evidence like tax returns, business accounts, or dividend statements to assess your average income. Just be ready to provide a paper trail that shows how much you typically earn each year.
Can I get income protection if I don't have a set salary?
Yes, absolutely. Running your own business as a sole trader or director can mean an unpredictable wage. Most insurers will accept evidence like tax returns, business accounts, or dividend statements to assess your average income. Just be ready to provide a paper trail that shows how much you typically earn each year.
Can I get income protection if I don't have a set salary?
Yes, absolutely. Running your own business as a sole trader or director can mean an unpredictable wage. Most insurers will accept evidence like tax returns, business accounts, or dividend statements to assess your average income. Just be ready to provide a paper trail that shows how much you typically earn each year.
What are the tax implications for business owners?
If your policy is set up and paid for through your limited company, it might be classed as a business expense, which can reduce your corporation tax bill. But if the business pays the premiums, then you might pay tax on the benefit when you receive it. It's wise to check with an accountant to see which setup suits your business and which benefits might be tax free.
What are the tax implications for business owners?
If your policy is set up and paid for through your limited company, it might be classed as a business expense, which can reduce your corporation tax bill. But if the business pays the premiums, then you might pay tax on the benefit when you receive it. It's wise to check with an accountant to see which setup suits your business and which benefits might be tax free.
What are the tax implications for business owners?
If your policy is set up and paid for through your limited company, it might be classed as a business expense, which can reduce your corporation tax bill. But if the business pays the premiums, then you might pay tax on the benefit when you receive it. It's wise to check with an accountant to see which setup suits your business and which benefits might be tax free.
Does income protection cover mental health conditions?
Yes, and that's an increasingly important part of modern income protection policies. Most insurers now include cover for mental health issues like stress, anxiety, burnout, and depression - recognising how much these can impact your ability to work. Some policies even offer early access to counselling or wellbeing support as part of your plan.
Does income protection cover mental health conditions?
Yes, and that's an increasingly important part of modern income protection policies. Most insurers now include cover for mental health issues like stress, anxiety, burnout, and depression - recognising how much these can impact your ability to work. Some policies even offer early access to counselling or wellbeing support as part of your plan.
Does income protection cover mental health conditions?
Yes, and that's an increasingly important part of modern income protection policies. Most insurers now include cover for mental health issues like stress, anxiety, burnout, and depression - recognising how much these can impact your ability to work. Some policies even offer early access to counselling or wellbeing support as part of your plan.
What is group income protection?
Group income protection insurance covers employees with a percentage of their salary if they can't work due to illness or injury. The employer pays the premiums, and the policy helps support staff financially during long-term absences. Sometimes it includes rehab support to help employees return to work sooner.
What is group income protection?
Group income protection insurance covers employees with a percentage of their salary if they can't work due to illness or injury. The employer pays the premiums, and the policy helps support staff financially during long-term absences. Sometimes it includes rehab support to help employees return to work sooner.
What is group income protection?
Group income protection insurance covers employees with a percentage of their salary if they can't work due to illness or injury. The employer pays the premiums, and the policy helps support staff financially during long-term absences. Sometimes it includes rehab support to help employees return to work sooner.
What is group income protection?
Group income protection insurance covers employees with a percentage of their salary if they can't work due to illness or injury. The employer pays the premiums, and the policy helps support staff financially during long-term absences. Sometimes it includes rehab support to help employees return to work sooner.
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